New regulations (the “Regulations”) applicable to skill games published by the Malta Gaming Authority (the “Authority”) provide that all skill games organised in Malta, provided from the territory of Malta or promoted or offered to persons in Malta shall be regulated with the burden of proving that an activity is a skill game resting on the party operating or promoting such an activity.
We can help you assess if these changes will affect your business in any way or what your what measures your organisation will need to take up to comply with such regulations.
We answered some questions you might have,
The regulations have been issued with a view to ensuring that:
The criteria which the Authority shall take into consideration in determining whether a game is a skill game or a controlled skill game shall include the following:
The Authority has the discretion to determine, basing itself on any one or more of the above criteria, whether an activity is more akin to a game of chance or a game of chance and skill than to a skill game, and can, therefore, exclude an activity from falling within the parameters of the skill games Regulations.
Applicants for a skill games license who already hold a Class 3 license, or a corresponding Class 4 license issued by the MGA in terms of the Remote Gaming Regulations, would not require to duplicate the administrative requirements in terms of the regulations that have already been satisfied by the same applicant and furthermore such applicant is exempt from the annual license fee.
An applicant for a license must be able to satisfy the Authority that an activity which it intends to offer under a license issued in terms of the regulations is a skill game and the Authority shall examine the documentation submitted, including any studies, research, rulings or certification submitted by an applicant prior to making such a determination.
A licensee in terms of the skill games Regulations is required to appoint and maintain at least one key official throughout the duration of the license term, and such an appointment has to be approved by the Authority.
The rate of the taxation imposed by the Regulations is that of 5% of real income. Real income shall be construed as total wages less total monies paid out to players. The maximum tax payable annually by a single controlled skill game operator shall not exceed €466,000.
The VAT Authorities have not yet issued any statement on how the new Regulations will affect the VAT position of those having an activity classified as a skill game.
The current VAT Act provides for an exemption without credit for supplies related to gambling as may be approved by the Minister. On the other hand, certain gaming activities provided over the internet may also qualify as electronically supplied services which will have a different VAT treatment.
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